Global products market weekly: Margins increase for the seventh week as an embargo on Russian oil and products rattles

The oil market spiked mid-week as the EU firmed up a sanctions package seeking a complete ban on all Russian crude in the next 6 months and refined products by the end of the year, including the provision of vessels and transport insurance of these products. Prices eased along with growing bearish sentiment around a weaker macroeconomic outlook as the US Federal Reserve implements historical increases to its interest rates, amid lingering concerns of a slump in China’s demand. North Sea Dated crude’s weekly average strengthened by US$7.45/bbl, in the week ended 6 May. Our ex-RVO global composite refining margin increased by US$1.37/bbl to US$31.16/bbl. Margins were supported by rise in global gasoline cracks. Weekly margins were at US$28.07/bbl above the five-year historical average for the same week.